RACIOCINIO E AÇÃO &ENGENHARIA.LOGÍSTICA

BRAZIL – B from BRIC’sBest Alternative of Investment Policy

2009 - 2010

• WHO WE ARE

• We are experienced business consultants for Brazilian market, counseling our clients on the best opportunities to increase their business possibilities regarding profitability. We take into consideration Economical and Political Analysis, as well as trends and market opportunities. Our mission is to create a useful study for investing capital to establish in Brazil – on productive and promising sectors of economy. On the other hand, we are prepared to help our clients in all steps of a project for business in Brazil

• Being so, in the past we introduced work methods adapted to dynamic economy growth. Presently we offer a balanced analysis taking some specific aspects of the business, such as logistics, tax incentives, marketing & sales, production facilities, search for acquisition & merger possibilities, goods’ import & export.

• Innovative methods were responsible to help several entrepreneurs to focus production and efforts to maximize ROI – Return on Investment.

• LATE EXPERIENCE

• We have worked with and developed studies for clients (both domestic and international companies) of the following industries:

• Food & Beverage, Liquors, Toiletries, Household Products, Banks,Credit Cards, Machinery and Heavy Equipments, Advertising Agencies, Consumer Services, Pharmaceutical Products, Medical/ Hospital Services, Art Galleries, Retailer, Insurance.

• Available on going services to our clients: Marketing & Business Plans, Market Research/ Services, Sales, Management Training Programs, Mechanical Engineering Projects, Logistics, Import/ Export, Law & Regulation Studies.

B from BRIC’S - BRAZIL MAP

Total area 8,514,877 sq kmCountry comparison to the world: 11

Land: 8,459,417 sq kmWater: 55,460 sq km

COUNTRY ASPECTS• Climate: mostly tropical, but temperate in south• Terrain: mostly flat to rolling lowlands in north; some plains, hills, mountains, and narrow

coastal belt• Natural resources: bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, tin,

uranium, petroleum, hydropower, timber• Freshwater withdrawal (domestic/industrial/agricultural):• total: 59.3 cu km/yr (20%/18%/62%) per capita: 318 cu m/yr (2000)• Population: 198,739,269 - country comparison to the world: 6• Age structure:• 0-14 years: 26.7% • 15-64 years: 66.8%• 65 years and over: 6.4%• Median age: total: 28.6 years• Urbanization: urban population: 86% of total population• Life expectancy at birth: total population: 71.99 years• Ethnic groups: white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other

(includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)• Language: Brazilian Portuguese• Literacy: definition: age 15 and over can read and write• total population: 88.6%

ECONOMY OVERVIEW• Economy - overview:• Characterized by large and well-developed agricultural, mining, manufacturing, and

service sectors, Brazil's economy outweighs that of all other South American countries and Brazil is expanding its presence in world markets.

• From 2003 to 2007, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992.

• Productivity gains coupled with high commodity prices contributed to the surge in exports. Brazil improved its debt profile in 2006 by shifting its debt burden toward real denominated and domestically held instruments. LULA da Silva restated his commitment to fiscal responsibility by maintaining the country's primary surplus during the 2006 election.

• Following his second inauguration in October of that year, LULA da Silva announced a package of further economic reforms to reduce taxes and increase investment in infrastructure. Brazil's debt achieved investment grade status early in 2008, but the government's attempt to achieve strong growth while reducing the debt burden created inflationary pressures. For most of 2008, the Central Bank embarked on a restrictive monetary policy to stem these pressures.

• Since the onset of the global financial crisis in September, Brazil's currency and its stock market - Bovespa – at first have significantly lost value, -41% for Bovespa for the year ending 30 December 2008.

• In the second half of 2009, Brazil restarts to increase stock market which has recovered and surpassed 2008.

GDPGDP (purchasing power parity):

$1.993 trillion (2008 est.)country comparison to the world: 10

$1.896 trillion (2007 est.)$1.794 trillion (2006 est.)

GDP - per capita (PPP): $10,200 (2008 est.)

Country comparison to the world: 102 $9,800 (2007 est.) $9,400 (2006 est.)

note: data are in 2008 US dollars

GDP and LABOR FORCE by SECTOR

• GDP - composition by sector: • agriculture: 6.7%• industry: 28%• services: 65.3% (2008 est.)• Labor force: 93.65 million (2008 est.)• country comparison to the world: 6 • Labor force - by occupation: • agriculture: 20%• industry: 14%• services: 66% (2003 est.)

FAMILY INCOME

• Distribution of family income - Gini index: 56.7 (2005)

• country comparison to the world: 10 • 60.7 (1998)

PUBLIC DEBT AND INFLATION

• Public debt: 36.9% of GDP (2008 est.)• country comparison to the world: 63• 52% of GDP (2004 est.)• Inflation rate (consumer prices):• 5.7% (2008 est.)• country comparison to the world: 93 • 3.6% (2007 est.)

MONEY AND CREDIT• Stock of money: • Country comparison to the world: 14 • $ 131.1 billion (31 December 2007)• Stock of quasi money: • Country comparison to the world: 6 • $ 792.8 billion (31 December 2007)• Stock of domestic credit: • Country comparison to the world: 12 • $1.377 trillion (31 December 2007)

MAIN PRODUCTS

• Agriculture - products: coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef

• Industries: textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment

ENERGY CONSUMPTION• Electricity - consumption: 402.2 billion kWh (2007

est.)• country comparison to the world: 10 • Oil - consumption: 2.372 million bbl/day (2007

est.)• country comparison to the world: 8 • Natural gas - consumption: 19.8 billion cu m

(2007 est.)• country comparison to the world: 35

INTERNATIONAL TRADE

• Exports: $197.9 billion (2008 est.)• country comparison to the world: 23 • $160.6 billion (2007 est.)

• Imports: $173.1 billion (2008 est.)• country comparison to the world: 24 • $120.6 billion (2007 est.)

RESERVES AND DEBTS• Reserves of foreign exchange and gold:

$193.8 billion (31 December 2008 est.)• country comparison to the world: 7 • $180.3 billion (31 December 2007 est.)• Debt - external: $262.9 billion (31

December 2008)• country comparison to the world: 27 • $240.5 billion (31 December 2007)

INTERNATIONAL INVESTMENT

• Stock of direct foreign investment - at home: $294 billion (31 December 2008 est.)

• country comparison to the world: 15 • $248.9 billion (31 December 2007 est.)• Stock of direct foreign investment - abroad:

$127.5 billion (31 December 2008 est.)• country comparison to the world: 23 • $107.1 billion (31 December 2007 est.)

COMMUNICATIONS• Telephones - main lines in use: 41.141 million (2008)• country comparison to the world: 7• Telephones - mobile cellular: 150.641 million (2008)• country comparison to the world: 6 • Telephone system: general assessment: good working system; fixed-line connections

have remained relatively stable in recent years and stand at about 20 per 100 persons; less expensive mobile cellular technology is a major driver in expanding telephone service to the low-income segment of the population with mobile-cellular telephone density reaching 80 per 100 persons

• domestic: extensive microwave radio relay system and a domestic satellite system with 64 earth stations; mobile-cellular usage has more than tripled in the past 5 years

• Radio broadcast stations: AM 1,365, FM 296, shortwave 161 (of which 91 are collocated with AM stations) (1999)

• Television broadcast stations: 138 (1997)• Internet country code: .br• Internet hosts: 9.573 million (2008)• country comparison to the world: 10 • Internet users: 50 million (2007)• country comparison to the world: 6

TRANSPORTATION • Airports: 4,000 (2009)• country comparison to the world: 2• Heliports: 13 (2009)• Pipelines: condensate/gas 62 km; gas 9,892 km; liquid petroleum gas 353 km;

oil 4,517 km; refined products 4,465 km (2008)• Railways: total: 28,857 km• country comparison to the world: 11 • Roadways: total: 1,751,868 km• country comparison to the world: 5 • Waterways: 50,000 km (most in areas remote from industry and population)

(2008)• country comparison to the world: 4 • Merchant marine: total: 136• country comparison to the world: 45 • Ports and terminals: Guaiba, Ilha Grande, Paranagua, Rio Grande, Santos,

Sao Sebastiao, Tubarao